ESTABLISHING INTERNATIONAL CASH MANAGEMENT IN REGIONAL BANK

New business area in regional bank: International Cash Management

Evolving customer needs require new service offering to ensure customer retention and attraction

The financial services industry experience rapid changes driven by digitization, competition from fin-tech startups and the threat of large global technology companies moving into the banking space. At the same time, the competition is intense between traditional players. One of our customers, a large regional financial player, experienced increased customer demand for international banking services as the local business environment are becoming more and more global. The outset was an immediate need to offer international banking services to retain existing and win new customers – 40% of the business was at risk

Ambition

Our customer articulated the ambition to be recognized as competitive within international cash management. A first phase project identified the need to develop new market analytics, launch a new business unit, recruit highly competent bankers, develop new products and processes, establish international alliances, upgrade IT platform and a general competence improvement of existing business banking personnel.

Transformation

After a 6 month transformation program the business unit was up and running and the new international services were launched in the market. New sales processes and sales support tools had been designed to achieve more proactive sales behaviour and 70+ cross-functional sales teams were established and trained. International presence was achieved through an alliance with a global wholesale bank and new digital capabilities were being developed.

Results

One year after ending the programme the bank can safely say that the investment in resources, internal training, IT development and other start up investments is already at break even. The future potential is great and the bank is very well positioned to meet future customer demand.

Key Insights:

A new business unit can be established and be operative in the market fast if you have an attractive ambition, the right mix of outside in perspective, investment willingness and delivery thrust.

Our customer was already recognized within their alliance as a strong project organization and are now adapting key project management components into their internal way of working

Management support and involvement is key to success and stick to the plan through resistance

Management support is generated with active involvement in solution development and efficient decision processes. Do not fall for the temptation to think that permanent change can be achieved through quick/simple measures

ABOUT:

Bene Agere is a management consultancy with global reach, working with ambitious leaders and organizations to develop and operationalize strategies, enabling your organization to reach new heights and deliver substantial and sustainable performance improvements.